In its most recent weekly update, Baltic Exchange reports about the recent trends in the tanker and dry sector.
The Capesize market appeared to get caught up in the wider market rallies as geopolitical tensions run high, with the 5TC lifting $8635 over the week to settle at $22,195.
What is more, tailwinds helped push the market higher but plenty of physical activity supported the rising rates. Fresh demand in Europe for alternative energy sources other than gas was answered by coal suppliers.
Panamax
A thriving Panamax market overall and an FFA market lent support to period and numerous deals were concluded. An 81,000-dwt delivery India agreeing $31,750 for one year’s trading.
The market in Asia got a head of steam midweek but this eased by end of the week as markets cooled. Primarily it was an Indonesia-centric market, but heightened demand from NoPac gave support with some firm rates agreed. A new build 82,000-dwt delivery Japan achieving $35,000 for a NoPac round trip the highlight. In the Atlantic, EC South America returned a two-tier market on the week.
Ultramax/Supramax
As the war in Ukraine entered its third week, the Atlantic was seemingly finding its feet. Owners remained reluctant to trade towards the East Mediterranean and expected a premium for such runs. From East coast South America, a 53,000-dwt was heard fixed for a trip to Haifa in the upper $30,000s.
For voyages from the Mediterranean it was the reverse. A 58,000-dwt fixing a trip delivery Canakkale to Houston with cement at $15,750. It was overall a strong week from Asia, the continued lack of prompt tonnage and strong backhaul demand resulted in some impressive rates being reported. A 56,000-dwt fixing delivery Indonesia redelivery China at $51,000.
Handysize
In Asia, brokers spoke of pressure remaining on Charterers in both the container and dry bulk markets. A 37,000-dwt fixed from Japan to the Mediterranean at $60,000. A 37,000-dwt open in Panjin 9-13 March fixed a trip to Chittagong at $38,000.
In East Coast India, a 40,000-dwt open 17-21 March fixed a trip to Safaga at $54,750. A 34,000-dwt open in China 18 March fixed for two to three laden legs redelivery Singapore-Japan range at $38,000.
The Atlantic rallied this week, brokers spoke of stems, which had been due to load in the Black Sea, moving to other loading regions including the US Gulf. A 38,000-dwt was fixed from Savanah to the Continent at $21,000. A 37,000-dwt fixed from Punta Rincon to China with a intended cargo of Copper Concentrates in the low $20,000s.
VLCC
As market participants adopt to the continuing situation in Ukraine, rates have fallen. However, the challenges for owners is made worse by the extreme bunker prices affecting the timecharter equivalents. For 280,000mt Middle East Gulf/USG (via Cape of Good Hope) the latest assessment is two points lower at WS22.5.
In the 270,000mt Middle East Gulf/China market, rates dropped six points to WS46.5 level (a round trip TCE of minus $15,300 per day). In the Atlantic region, the 260,000mt West Africa/China route fell five points to WS45.5 level (minus $15,200 per day round-trip TCE), with the only reported fixture being a BP-operated VLCC to Exxon for a West Africa to India trip at WS48 at the beginning of the week. The 270,000mt US Gulf/China route has lost $437,500 since last week and is now valued at $5.425m (a round-trip TCE of minus $17,600 per day). However, there are reports overnight of $5.5m being on subjects for a trip to Korea.
Suezmax
The 135,000mt Black Sea/Augusta route jumped down 31 points to WS257 (a round-trip TCE of $112,900 per day) and rates for 130,000mt Nigeria/UKC continued their tumble, losing another nine points this week to WS80 (a round-trip TCE of minus $9,300 per day). For the 140,000mt Basrah/West Mediterranean route, charterers have managed to claw back seven points and the market is now assessed at WS48.5
Aframax
The 80,000mt Ceyhan/Mediterranean market dropped 91 points to just below the WS140 level (a round-trip TCE of $6,500 per day). In Northern Europe, the rate for 80,000mt Hound Point/UKC has settled back down to WS135 (a round-trip TCE of minus $2,000 per day) – a drop of 81 points for the week.
Meanwhile, rates for the Russian loading route of 100,000mt Baltic/UKC have rocketed a further 63 points to just below WS570 (a round-trip TCE of $253,100 per day) on the back of the very restricted number of vessels able – and willing – to load in Russia, discharge in Europe and that are ice-region suitable.
On the other side of the Atlantic, the market slid further downwards. A 70,000mt EC Mexico/US Gulf has fallen three points to WS160 (a round-trip TCE of $3,700 per day). Similarly, 70,000mt Caribbean/US Gulf rates fell three points to the WS152.5 level (a round-trip TCE of $849 per day). For the transatlantic route, the rate for 70,000mt US Gulf/UK Continent fell 15 points to WS137 (minus $2,000 per day round-tip TCE, or a slightly more positive figure basis one-way economics).
